A sign is placed in front of a house in San Rafael, California on August 07, 2024.
Justin Sullivan | Good pictures
According to the National Association of Realtors, closed sales of foreclosed homes rose 1.3% in July compared to June, compared to a seasonally adjusted, annual rate of 3.95 million units. This is the first profit in four months.
Sales were down 2.5% compared to the same period last year.
Sales saw the biggest gains in the Northeast and were flat in the Midwest. Prices have also gone up in northeastern states.
“Despite the small gains, home sales remain sluggish,” NAR’s chief economist Lawrence Yun said in a release. “But consumers are definitely seeing more choices, and affordability is improving because of lower interest rates.”
The sale was based on contracts signed in May and June, when mortgage rates on the popular 30-year fixed loan were above 7%. Rates started to decline in July and now stand at 6.5%.
All cash offers accounted for 27% of July sales, up from 26% a year earlier and higher than the historical norm.
The supply of homes for sale continued to rise in July. At the end of the month, there were 1.33 million homes on the market, up 0.8% from June and up 19.8% from July 2023. At the current sales pace, it reflects four months of supply, slightly less than June.
However, the increase in supply has not helped cool house prices.
First-time buyers accounted for 29% of sales in July, unchanged from June but falling to 30% in July 2023. Historically, these buyers have accounted for close to 40% of home sales, but affordability has taken a hit over the past two years. Due to rapidly rising home prices and high mortgage rates.
Now that prices have come down a bit, demand has started to pick up. A separate report from real estate brokerage Redfin said requests for tours and other buying services from Redfin agents rose 4% last week to the highest level in two months.
